Seasonally adjusted unemployment rates
A) adjust for the predictable summer increase in the unemployment rate for teenagers.
B) adjust for the predictable summer decrease in the unemployment rate for teenagers.
C) are the same as the unadjusted rates in periods of bad weather.
D) are not calculated for the U.S. economy.

Question

Quizplus · Accepted Answer

Seasonally adjusted unemployment rates are calculated to remove the effects of regular, seasonal fluctuations in the labor market. One of these fluctuations is the predictable increase in the unemployment rate for teenagers during the summer months when school is out. Therefore, seasonally adjusted unemployment rates adjust for this increase.

Seasonally Adjusted Unemployment Rates